February Sees Increased Inventory and Steady Prices in Florida's Housing Market

Florida Housing Market Update: February Insights

In February 2025, the Florida housing market experienced notable changes. According to the latest reports from Florida Realtors®, there has been an increase in the number of active listings, alongside moderating median sales prices on a year-over-year basis. This move towards equilibrium is an important development for both buyers and sellers.

Tim Weisheyer, the President of Florida Realtors®, emphasized that the single-family housing market is adjusting, as evidence shows that for-sale inventory is on the rise while median prices remain stable. This creates an environment where both sellers and buyers can negotiate more fairly, ultimately addressing the pressing affordability issues within the market.

Trends in Sales

The closed sales data for February revealed that statewide, 17,698 single-family homes were sold, representing a 7% decrease compared to the same month the previous year. Meanwhile, condo and townhouse sales were much lower, with a total of 6,503 transactions, accounting for a 13% drop year-over-year. These statistics are crucial for understanding the dynamics of the market, which show that while inventory is increasing, sales figures are decreasing.

Interestingly, the median sale price for single-family homes remained unchanged at $415,000, while that for condo-townhouse units decreased by 3.1%, settling at $315,000. This data illustrates the shifting dynamics and the need for buyers in the condo market, where prices are adjusting downward, making it more favorable for those looking to purchase.

Rising Inventory and Market Balance

According to Dr. Brad O'Connor, Florida Realtors® Chief Economist, the trend of more listings hitting the market than the number of homes sold each month has created a rising inventory situation. This shift is expected to continue into the spring, suggesting that the market is gradually balancing out between buyers and sellers. The report indicates a 5.3-month supply of single-family homes for sale, which is a definitive sign that the market is moving away from being seller-dominated.

Historically, a balanced housing market typically has a supply of five to six months. Therefore, the current conditions suggest that Florida's housing landscape is transitioning towards a more equitable playing field. Additionally, for condos and townhouses, the month’s supply has reached a significant 9.7 months, indicating that this segment of the market is distinctly favoring buyers.

Challenges Ahead

Despite these positive shifts, challenges remain, particularly in the condo-market sector, where sellers are finding it necessary to lower their prices to attract buyers. Dr. O'Connor noted that the price reductions have been seen over the last several months, underscoring the competitive nature of the market for condo-townhouse properties.

In summary, the data from February indicates that Florida's housing market is evolving. While single-family homes are seeing a stabilization in prices, the condo-townhouse market is leaning towards greater supply, favoring buyers. Overall, these dynamics are critical for industry participants, as they navigate through what is becoming a more balanced and strategic market condition. As buyers seek out opportunities, the experience and knowledge of local Realtors remain invaluable.

As the spring season approaches, buyers and sellers alike will be looking to capitalize on these market conditions, making it an exciting time for Florida's real estate landscape.